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In planning a group audit (SA 600 / SA 600(R)), the principal auditor's use of component auditor's work requires:
ASufficient understanding of the component auditor's competence, independence, and audit work performed
BJust the component's audit report
COnly the component's trial balance
DComponent management's written representation
Answer & Solution
Correct answer: B. Just the component's audit report
1. SA 600/SA 600(R) requires the principal auditor to evaluate component auditor's capabilities and work.
2. Reliance is not blind; it is documented evaluation.
3. TB, mgmt rep, and report alone are insufficient.
_Source: ICAI BoS CA Final Paper 3, Ch 2 "Audit Planning Strategy and Execution"_
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